There is good news and bad news.First the good.
GDP grew by 0.6% in Q2 in all sectors – even construction showed some life ( although it is still 15% below 2008 levels). Consumption spending improved and retail sales were up 2% in volume terms.
Now for the bad news – this mild upturn has been financed by borrowing and reduction in debt repayments, not by growth in wages. If, and it is a big if, employers decide that the upturn in confidence is sufficient to give above inflation wage awards, then the recovery will be sustained. But if not, then it will peter out by the end of the year.
The indicators of a sustainable recovery would be wages growing at 5%, retail sales volumes at 3%, and a surge in investment spending financed by the banking system.
Read the full article here.
Roger Martin-Fagg is a regular Speaker to ACE groups and will be spending the morning of 17th October 2013 with the members and Guests of ACE47, the CEO group serving Bristol, Bath & Swindon, helping them to “Understand the Economy”.
To discuss availability of Guest places, contact firstname.lastname@example.org